Question

for the first box for the entity can elect to be taxed as an (Limited Liability company, limited liability partnership, partnership, S corp) and for the second box there are forms (1065,1120,2553,8832) and lastly (corporations, limited liability partnership, limited liability companies, partnerships)

Hoffman Microsoft Edge - 0 mato.com/StudentPlayerHomeworkshomeworld-5574996208question de 18 flushed ld-5863724&centerwin wye Corporate Tax (Spring 2020) Nick Hoffman & | 02/01/201:08 PM Save Homework: Chapter 2 Homework Score: 0.2 of 1 pt 2 of 21 (11 complete) * QC:2-4 (book/static) HW Score: 46.48%, 9.76 of 21 pts E Question Help John and W desco orm White Corporation on May 3 offrent year What the entity's dete c tion Area t ive b es t how do John and let themative classifications) and (2) what are the tax consequences of doing so? The data cantication for White Corporation is in corporation Theerthy candlet to be a partnership Aneligible 2 12 months of the pres ence y may electis classification by Sing Form 1065 within the first partnership's Click to select your answer(s) and then click Check Ammer Final Check

Answer 1

The entity can elect to be taxed as a S Corp , An eligible entity may elect its classification by Filling Form 2553 with in the first 2 and half months of the Corporation’s Existence

Explanation : Entity Elects to be taxed as a S Corp because it can avoid double taxation That is when company fills Form 2553 to be taxed as S Corp , It act as a pass through meaning they need not pay corporate tax but they would be filing individual Income tax directly, where as if it was C Corp they would have paid corporate tax and also income tax